The New Economy: Investing In People

We are seeing the foundation for a major paradigm shift in our economy taking place. There are many changes that we see arising, all of which will end up moving things in a different direction economically. Some of this is the result of the introduction of cryptocurrency while some of it is outside its bounds.

One of the major transitions we are going to make is the concept of investing in people as opposed to companies.

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This was something that was long touted yet, the reality, is that it was mostly lip service. Companies like to claim this but COVID-19 showed how disinterested corporations were in the workers. Certainly, we can make the case they truly weren't invested.

Of course, it really is not a corporation's role to do that. It exists to generate maximum profits for the owners (shareholders) while reducing personal liability. Once we accept that is what corporations do, we can approach the situation sensibly.

One challenge is that, in the process, corporations have to spend a lot of money paying a host of people for rather average production. This is one of the drawbacks and possibly a reason why the economic growth rate, especially in the West, was lackluster the last few decades.

All Stars Make The Difference

In professional sports, we see where everyone stands. Since a "performance review" is done on an ongoing basis, it is easy to see where each player is ranked. Sports are quantified, with metrics that are transparent for all to see. We know how many points each individual scored, how many TD passes thrown, or how many balls were hit over the fence. Since we are aware of this, so are the players' agents.

This leads to a separation of incomes. Obviously the best players get paid the most money. While not perfect, those earning the superior salaries tend to have the statistics to back them up. There is a performance reason why these individuals get what they do.

In a corporation, things are a bit different. Companies want to find the "all stars" in their fields also. The problem is that it is not as easy to quantify. Some positions such as sales or perhaps CEO based upon running other public corporations could provide insight. However, many positions require paying each individual very well to see which one breaks out.

For example, let us take a company that is hiring chemical engineers. How do you know which one is going to make the discovery that will lead to a multi-billion dollar increase in revenues? The reality is there is no way to know. Hence a corporation is required to pay high salaries to a host of chemical engineers, most of whom are average performers.

That equates to a lot of waste. Nevertheless, it is what must be done to find the proverbial "needle in the haystack".

Corporations Will Be Like Venture Capital Funds

We could see a shift as corporations get away from this mindset that was prevalent for the last century. Instead, we will likely see the success entities in the future operate more like Venture Capital funds.

What is the difference?

A corporation hires people to fill roles. In the previous example, a company will hire 100 chemical engineers because that is how many they need. Each one will be screened based upon their experience and potential yet they will have to operate within the framework of the system. In short, the person is secondary to whether he or she can fill the role.

As mentioned, compensation is not based upon ideas or insights. Instead, it uses the going market rate along with whatever other incentives can be pieced together to attract the perceived talent desired. Still, we have no idea who the all-stars are, yet if enough chemical engineers are locked in labs, surely something is going to come out of it.

Venture Capital funds do the exact opposite. They look at the ideas of the individual (or team) as well as the capabilities to determine if it can be pulled off. Naturally, those with a track record for success will have an easier time raising funds as compared to those who are presenting their first idea.

Nevertheless, each is not approached looking to fulfill a role but, rather, based upon what they can economically produce. Venture Capitalists are sizing up who the all-stars are from the start. They are still taking a risk yet are trying to eliminate random chance as much as possible. The experience and background of the individual(s) is secondary to the potential of the idea.

As we can see, this is a radical shift.

Individual Reputation

If we start to follow this path, we can see how we are going to develop a new economy based upon reputation. The individual is going to be a lot more important because that is what is being invested in.

Corporate America made people faceless. We all became, for the most part, just a piece in a much larger machine. Of course, that was very effective since it allowed for the numbers to work in their favor. However, it was not the best thing for overall growth.

There are millions of potentially successful ideas that never get funded. Since people are akin to today's assembly line, showing up to sit in a cubicle all day or spend time in a lab testing the results of a colleague, their innovation and creativity is sidelined. At the same time, since budgets and allocations of resources is based upon an overall systemic framework, even great ideas get shelved.

When we are looking at the individual reputation, things take on a different meaning. No longer are we looking at the assembly line concept. Here, the all-star concept can emerge. If one is believed to be that, the funding will follow. Ultimately, once the concept is approved the only question is "can this person pull this off?".

Cryptocurrency's Role In The New Economy

Cryptocurrency has a vital part to play in this process. If the economy is going to transform, this could be one of the vehicles that gets us there.

Again, using the example from above, how many companies can afford to hire a large number of chemical engineers? Or software engineers? Or whatever highly paid talent is required to start to play the numbers game?

Obviously we are only dealing with large companies. Google can afford to hire 10,000 software engineers; so can Microsoft, Amazon, Facebook, and perhaps a few others. The majority of companies, however, are excluded from this club.

Also, these companies have the ability to take some chances. A Google can invest billions of dollars into a project it eventually cans. Few companies can do that. Hence, they can put the odds in their favor of finding, and profiting from, the breakthrough. After all, successful projects like search and GMail pay for a lot of failed attempts.

Here is why we see the bigger only getting bigger, especially in the world of technology.

Cryptocurrency can offer a different alternative. If 10,000 software engineers each have one idea, we can fund them all via cryptocurrency. This will allow them to pursue their endeavors. Naturally, most will end up being unsuccessful. However, we will still benefit economically because there will be a certain percentage that are highly lucrative. We could see hundreds of billions in economic value generated if just half a percent of these are successful.

This is a return to the concept of yore. When we were in smaller circles, reputation meant a lot. Those who could produce for the community were the ones valued. If a local businessman with a sterling reputation decided to expand his business, the banker was more than willing to fork over the money. This led to better overall growth rates.

We can see how this same concept can be applied to our era today. By focusing upon individual ideas as opposed to companies, we can see how this will transition. Capital flows will radically change, putting individuals on par with major corporations.

This will possibly lead to an entirely new economy. That is important since the one we presently have is very sick. It is time to kickstart growth rates. After all, we are the age of #technology and yet we are seeing economic activity drop.

Perhaps we are moving back into a time where people are important again.


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I believe I came up with my own quote two years ago.

"My first greatest investment was in myself, My second was investing in others"

There's seriously so much potential and amazing things that can come from crypto and it's making me sick lately that nothing lately has been anything but negative and regulations. I feel now more than ever we need to get serious about crypto and start fighting back.

The more negativity there is, the more we are on the right path.

If #cryptocurrency was no threat to the present #economy, then there would not be the FUD. #Bitcoin still gets a lot of attention but the true impact will come from elsewhere.

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#Bitcoin still gets a lot of attention but the true impact will come from elsewhere.

I see DeFi as a bigger threat to the current system than Bitcoin.

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My first greatest investment was in myself, My second was investing in others

Hey, I like that very much!

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Well said as investing in people is what drives a business or investment. And there is no better proof than with LEO Finance or Cub DeFi!

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And there is no better proof than with LEO Finance or Cub DeFi!

It certainly is providing a model albeit not the only one. However, the #leofinance ecosystem is showing how those who are truly dedicated are helping to expand things.

Now if we take this to the next level where some people have ideas and are funded by those on here, we can see how it all works.

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That's somewhat the mindset I try to adopt here on Hive.

There are many projects that we can pick to invest in such as UTOPIS, LBI, CL, to name a few. I believe in the future we'll see much more of that and as you said, crypto will allow us to fund the ones we think will succeed.

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There are a lot of projects. However, we need to be careful of just doing the same *Wall Street stuff. For a new economy to emerge, we need to start developing the funding mechanism that will allow for creativity and innovation.

It will come in time. The first step is filling our bags to give us the financial resources to fund what we need to.

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I think helping others to build their dreams while actualising one's in the process is what I understand. But then this is a model that will work not with the current system we have in the world like you've written. While Google and co have the ability to change the world, obviously they're choosing not to do so.

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While Google and co have the ability to change the world, obviously they're choosing not to do so.

I would disagree to a point. #Google is definitely changing the world but it is not doing so in a way that alters the #financial path of humanity.

It is Web2. We need #web3 to start changing this.

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Yeah, I would have stated, "not finacially inpacting on humans" but I just didn't state it, but then the money they've been able to make changing the world should be somwhat enough to even create more opportunities and it'll be a win-win situation.

Yeah we need web 3 to start changing this, like you've stated. Imagine if it was totally different

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It is starting. Just look at the few on #hive that had their lives changed financially. It seems you are one of them. There are #financial benefits you received that put you in a different position.

We can see millions more affected in a similar, positive way. That is what #cryptocurrency is offering. As the crypto-economic system is built out, we will see the offerings increasing.

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There are notable examples of exceptions to the getting paid for stats rules in sports. I could argue monopolized industries and plutocracy has put us all in the world in a situation where we are easily compromised or put in a walled garden of authoritarian NGOs and bankers who took over all resources and even sports.

Just some examples for sports...

  • https://www.sportscasting.com/michael-jordan-perfectly-predicted-sixers-ben-simmons-disaster-16-years-ago/

    • “In our sport, you get paid off of potential. A rockstar, you have to be good,” Jordan said. “If you come in now, most of our young kids we don’t know how good they’re gonna be, but yet they got five-year guarantees, millions of dollars, admirations of many. They get that before they play one game. You’re rolling the dice to see if this kid is ever gonna be good or not. So, in essence, you’re paying the kid off of potential that he may be great. I think it sets bad work ethic. When you get something so easily, you’re not gonna work as hard.”

  • https://www.espn.com/espn/otl/story/_/page/UFCpay/ufc-fighters-say-low-pay-most-painful-hit-all

    • "The top 5 percent [of fighters] are definitely making good money, but you've got to look at the guys at the bottom of the card," the fighter said. "They can't fight anywhere else. If they make $10,000 a fight and fight every six months, they can't make ends meet."
      "We're definitely not getting our fair share of the cash," said another fighter currently under contract with the UFC. A fan favorite, he, too, refused to be named, citing concerns about the reaction from UFC management.
      "Any opposition, they [expletive] crush it," said the fighter. "Until somebody starts a union, we're all sort of at their mercy."

But hopefully you are right and that's the individual's time to rise. We are the product and we can't just let them easily take over our communities and minds.
Im sure there is space for the individual to over come the mind control and provide real world value to themselves and the community.
Maybe blockchain technologies can be used to help build and strengthen real world economies and communities locally; thus empowerment to the individual.

That is certainly true on the initial contract, especially in sports like #basketball and #football. However, over time, the ones who put up the stats tend to make the money (unless it is a box office draw like Jordan with the Wizards).

Im sure there is space for the individual to over come the mind control and provide real world value to themselves and the community.

This is a large undertaking and will require a lot of people waking up to the misdirection and lies that the mainstream media provides.

The key is developing a system to contrast what is taking place at the other level. We are starting to put together the foundation.

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I see massive development and to be honest the base code is brilliant the way Dan created it. Steem and now Hive are amazing reflections of real world inflationary economic system.
Now that it is less of a totalitarian ecosphere and one of governance, on Hive more so than crypto in general, I see Dan's baby taking on a life of its own and evolving beautifully.
EXCEPT... I do think that the social media side needs to have greater representation with the governance aspect in terms of development and further protecting the content creators there (prioritizing the individual) in the case a big enough purchase is made with hive in which we all get IBM rich but see the social media side dissolve.
Or better promote hive with modern day social media content creators with large audiences in order to better sell Hive. Further backing the argue your making that the individual still and will always have power. Its just a matter of harnessing that power through trends in suppose.

Nice post! Interesting topic. A company invests in employees, not all of whom have good skills, but when the whole thing works, I don't think there is a need to change teams. Regarding the by @st8z logo, I too think that many things will change in 2025, especially in the financial environment, the main event will be the mass diffusion of cryptocurrencies.

Four years is a long time. I put together that placard (which was amended) a number of year ago. It reminds me to think long-term with #cryptocurrency and to realize that massive change of this magnitude requires time.

We will be in a much different world by 2025.

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I think this would be nice if it becomes like this. As it is right now, the funding tends to be in the hands of the banks or VCs. If we allow tokenization of people then we can invest directly into people themselves. Do you think there will be a shift of power from big tech?

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Do you think there will be a shift of power from big tech?

Absolutely. There is always a shift away from Big Whatever it is. Look at Big Oil, that is under major threat.

The #banking industry is cooked so that one is not really a problem. #DeFi will take care of that. The venture capital world needs to be rewritten by us in #cryptocurrency. Imagine if we have $500-$100 billion to invest in start ups.

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Very good to read your post all the time because it is all about information example and analysis of economic indicators. the case you have explained about the hiring of software engineers by the big companies is obviously possible but with the blockchain and cryptocurrency we can have the reduction of that amount at least to some extent. in this modern age of economic problem we can find such a way to have the better solution in the economic indicators.

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Investing in people is the way to get things done and one has to only look at what StoreDot has done with their batteries. They have 1000 chemical engineers working on their team so it will have the desired effect as you put it. Finding the one individual may not be easy but as a team they will definitely help each other solve whatever their objective is.

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Great post today @taskmaster4450! Enjoyed the reading! You have som sweet points to be taken into consideratione by us all moving forward!

I am amazed by how you take what is in my head and write it so well. Some days I feel like you are a mind reader. Lol

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I think crypto is and will change the future in that regards why it is being attacked so much by the mainstream, it opens up opportunities to anyone willing to leave their mark in whatever way they please or have the ability giving everyone and anyone a fair chance at an attempt at success.

In today's society when everyone makes relatively the same, there is no incentive when poor behavior or contribution is paid the same as being a "star" in your field has no incentive to really push it.

Of course, the early adopters may benefit greatly having more experience when the masses catch up on top of having built our own resources to affect the fields we choose. The legacy economy could use a little competition, they have grown a bit of an inflated ego and I'm not a fan of their "elitism", I'm sure most of us aren't.

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To support your work, I also upvoted your post!

This is a pretty astute observation. I think you are right in your assertion. People will be free from the shackles the power structures imposed as blockchains open up so many doors and potentials for so many. The great idea doesn't need to be an impossibility or something that just gets snatched up by a corporation. Reputation will be much more important moving forward. Hive is ahead of the curve in that respect.

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One problem I see emerging in society is that opportunity comes to those with money, what ever happened to free health care and free education. These are slowly being eaten away, and we are now faced with a divided society of haves and have nots. Hopefully crypto bridges this gap and gives opportunity to all. Perhaps that's why there is so much dissent about crypto for those with real world assets. They are fearful their position in society will not be maintained.

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This is already happening in the online blockchain gaming environment. Players are investing in other players. We can look at 2 examples, Splinterlands and Axie Infinity.

Both of these games are formulating scholarship programs. These programs allow a player to take their owned assets and lease them to another player, who will then play and win earnings for themselves and their sponsor.

This is allowing people whom otherwise not be able to afford the cost of entry into these games to earn themselves crypto regardless. Ive seen several discord servers filled with people from various countries asking to take part/offering scholarships.

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Cryptocurrency has a vital part to play in this process. If the economy is going to transform, this could be one of the vehicles that gets us there.

Yes, crypto is the long awaited financial balancing mechanism which will play vital role in coming future.

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This is the first time I saw you comment on the #LeoFinance community, @sandeep126! 😏 Welcome to LeoFinance! 🎉